Brazilian Brokerages Pick Copasa and JBS for 5%+ Weekly Gains; Safra Sells Usiminas

The Quick Take

• Íon Itaú BBA recommends Copasa (CSMG3) and Bradesco (BBDC4) for 5%+ weekly returns
• Safra Corretora picks JBS (JBSS32) while recommending selling Usiminas (USIM5)
• Multi-brokerage water utility consensus signals regulated infrastructure over cyclical steel

Two leading Brazilian brokerages have released short-term trading recommendations for the current week, with Itaú BBA's Íon platform recommending Copasa (CSMG3), Bradesco (BBDC4), and 11 additional stocks targeting weekly returns above 5%. Copasa, the Minas Gerais water utility that closed the previous Friday at R$64.17, is highlighted for its regulated concession cash flow profile and consistent dividend payment history. Bradesco, Brazil's second-largest private-sector bank, appears as a financial sector recovery play given improving credit quality trends and rate sensitivity to Selic normalization.

Safra Corretora's complementary list features JBS (JBSS32), Brazil's protein processing giant with global operations in beef, pork, and poultry, as its lead pick alongside three additional names targeting similar weekly return thresholds. Safra also recommends selling Usiminas (USIM5), the steel company, reflecting concerns about Chinese steel demand softness and its impact on Brazilian steelmaker export competitiveness. The JBS recommendation may reflect expectations of post-earnings momentum following recent operational results.

The simultaneous recommendations from Íon Itaú and Safra with overlapping water utility conviction — Copasa appearing alongside Ágora's August dividend recommendations in separate research — suggests a broad analyst consensus forming around Brazilian regulated utilities as the preferred equity income vehicle in the current interest rate environment. For global emerging market investors allocating to Brazil, the convergence of multiple brokerage recommendations toward water and sanitation utilities reflects the sector's combination of inflation-linked revenue, government concession protection, and yield premium over fixed income alternatives.

Synthesized from 2 sources.